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Global Electric Vehicle Sales to Grow by 40% in 2023: MIC
May 11, 2023

According to the Market Intelligence & Consulting Institute (MIC) of the Institute for Information Industry (III), global sales of electric vehicles (EVs) are expected to grow by 40% from 2022 to reach 14.3 million units in 2023. The market share of new EVs is approximately to reach from 15% in 2023 to 22% by 2025. Based on MIC's findings, Europe's market share declined from 43% in 2020 to 25% in 2022, while China's market share grew from 41% in 2020 to nearly 60% in 2022.

Global EV Sales Volume, 2013 - 2025

Source: Marklines, 0IEA, EV Volumes, CPCA, compiled by MIC, May 2023

Yi-ching Lee, a senior industry analyst at MIC, said that the global EV industry has two focus areas in 2023: the first is the end of subsidy policies and the second is trend of affordable EVs. Starting at the end of 2022, the end of subsidies in countries such as China, the UK, Germany, and Norway will likely bring about a wave of industry restructuring, during which weaker carmakers were be forced to weed out. This has had a significant impact on local sales in China, prompting the central government to launch a policy of promoting domestic affordable EVs to quickly stimulate demand in second- and third-tier cities, benefiting Taiwan's EV supply chain. In addition, although subsidies in the United States, Japan, India, and South Korea remain relatively the same, they have been reduced in terms of conditions. The most significant impact on the global EV industry is the US' anti-inflation bill, which has forced carmakers and battery manufacturers to expand or establish plants in North America, attracting automotive suppliers to follow suit and establish short supply chains.

Second, there is a trend toward affordable EVs. According to MIC, the EV market has entered a competition stage, with Tesla's strategy of lowering prices and pursuing market share causing disruptions in the global automotive industry. In response to rising material costs, carmakers have raised prices for high-end models, while many have followed suit and lowered prices for mid-range models to gain market share. In addition, major countries' policies of installing more charging stations/piles will continue to lower the barrier to entry for consumers. EVs are not moving toward lower prices but toward affordability, which will further increase the global EV market penetration rate.

Established in 1987, MIC is a division of III (Institute for Information Industry), a major government think tank, and one of the leading IT research institutes in Taiwan.

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